Wages of Labour

Wages are determined through the antagonistic struggle between capitalist and worker. Victory goes necessarily to the capitalist. The capitalist can live longer without the worker than can the worker without the capitalist. Combination among the capitalists is customary and effective; workers’ combination is prohibited and painful in its consequences for them. Besides, the landowner and the capitalist can make use of industrial advantages to augment their revenues; the worker has neither rent nor interest on capital to supplement his industrial income. Hence the intensity of the competition among the workers. Thus only for the workers is the separation of capital, landed property, and labour an inevitable, essential and detrimental separation. Capital and landed property need not remain fixed in this abstraction, as must the labour of the workers.

The separation of capital, rent, and labour is thus fatal for the worker.

The lowest and the only necessary wage rate is that providing for the subsistence of the worker for the duration of his work and as much more as is necessary for him to support a family and for the race of labourers not to die out. The ordinary wage, according to Smith, is the lowest compatible with common humanity [6], that is, with cattle-like existence.

The demand for men necessarily governs the production of men, as of every other commodity. Should supply greatly exceed demand, a section of the workers sinks into beggary or starvation. The worker’s existence is thus brought under the same condition as the existence of every other commodity. The worker has become a commodity, and it is a bit of luck for him if he can find a buyer. And the demand on which the life of the worker depends, depends on the whim of the rich and the capitalists. Should supply exceed demand, then one of the constituent parts of the price – profit, rent or wages – is paid below its rate, [a part of these] factors is therefore withdrawn from this application, and thus the market price gravitates [towards the] natural price as the centre-point. But (1) where there is considerable division of labour it is most difficult for the worker to direct his labour into other channels; (2) because of his subordinate relation to the capitalist, he is the first to suffer.

Thus in the gravitation of market price to natural price it is the worker who loses most of all and necessarily. And it is just the capacity of the capitalist to direct his capital into another channel which either renders the worker, who is restricted to some particular branch of labour, destitute, or forces him to submit to every demand of this capitalist.

The accidental and sudden fluctuations in market price hit rent less than they do that part of the price which is resolved into profit and wages; but they hit profit less than they do wages. In most cases, for every wage that rises, one remains stationary and one falls.

The worker need not necessarily gain when the capitalist does, but he necessarily loses when the latter loses. Thus, the worker does not gain if the capitalist keeps the market price above the natural price by virtue of some manufacturing or trading secret, or by virtue of monopoly or the favorable situation of his land.

Furthermore, the prices of labour are much more constant than the prices of provisions. Often they stand in inverse proportion. In a dear year wages fall on account of the decrease in demand, but rise on account of the increase in the prices of provisions – and thus balance. In any case, a number of workers are left without bread. In cheap years wages rise on account of the rise in demand, but decrease on account of the fall in the prices of provisions – and thus balance.

Another respect in which the worker is at a disadvantage:

The labour prices of the various kinds of workers show much wider differences than the profits in the various branches in which capital is applied. In labour all the natural, spiritual, and social variety of individual activity is manifested and is variously rewarded, whilst dead capital always keeps the same pace and is indifferent to real individual activity.

In general we should observe that in those cases where worker and capitalist equally suffer, the worker suffers in his very existence, the capitalist in the profit on his dead mammon.

The worker has to struggle not only for his physical means of subsistence; he has to struggle to get work, i.e., the possibility, the means, to perform his activity.

Let us take the three chief conditions in which society can find itself and consider the situation of the worker in them:

(1) If the wealth of society declines the worker suffers most of all, and for the following reason: although the working class cannot gain so much as can the class of property owners in a prosperous state of society, no one suffers so cruelly from its decline as the working class.

(2) Let us now take a society in which wealth is increasing. This condition is the only one favorable to the worker. Here competition between the capitalists sets in. The demand for workers exceeds their supply. But:

In the first place, the raising of wages gives rise to overwork among the workers. The more they wish to earn, the more must they sacrifice their time and carry out slave-labour, completely losing all their freedom, in the service of greed. Thereby they shorten their lives. This shortening of their life-span is a favourable circumstance for the working class as a whole, for as a result of it an ever-fresh supply of labour becomes necessary. This class has always to sacrifice a part of itself in order not to be wholly destroyed.

Furthermore: When does a society find itself in a condition of advancing wealth? When the capitals and the revenues of a country are growing. But this is only possible:

(a) As the result of the accumulation of much labour, capital being accumulated labour; as the result, therefore, of the fact that more and more of his products are being taken away from the worker, that to an increasing extent his own labour confronts him as another man’s property and that the means of his existence and his activity are increasingly concentrated in the hands of the capitalist.

(b) The accumulation of capital increases the division of labour, and the division of labour increases the number of workers. Conversely, the number of workers increases the division of labour, just as the division of labour increases the accumulation of capital. With this division of labour on the one hand and the accumulation of capital on the other, the worker becomes ever more exclusively dependent on labour, and on a particular, very one-sided, machine-like labour at that. Just as he is thus depressed spiritually and physically to the condition of a machine and from being a man becomes an abstract activity and a belly, so he also becomes ever more dependent on every fluctuation in market price, on the application of capital, and on the whim of the rich. Equally, the increase in the class of people wholly dependent on work intensifies competition among the workers, thus lowering their price. In the factory system this situation of the worker reaches its climax.

(c) In an increasingly prosperous society only the richest of the rich can continue to live on money interest. Everyone else has to carry on a business with his capital, or venture it in trade. As a result, the competition between the capitalists becomes more intense. The concentration of capital increases, the big capitalists ruin the small, and a section of the erstwhile capitalists sinks into the working class, which as a result of this supply again suffers to some extent a depression of wages and passes into a still greater dependence on the few big capitalists. The number of capitalists having been diminished, their competition with respect to the workers scarcely exists any longer; and the number of workers having been increased, their competition among themselves has become all the more intense, unnatural, and violent. Consequently, a section of the working class falls into beggary or starvation just as necessarily as a section of the middle capitalists falls into the working class.

Hence even in the condition of society most favorable to the worker, the inevitable result for the worker is overwork and premature death, decline to a mere machine, a bond servant of capital, which piles up dangerously over and against him, more competition, and starvation or beggary for a section of the workers.

The raising of wages excites in the worker the capitalist’s mania to get rich, which he, however, can only satisfy by the sacrifice of his mind and body. The raising of wages presupposes and entails the accumulation of capital, and thus sets the product of labour against the worker as something ever more alien to him. Similarly, the division of labour renders him ever more one-sided and dependent, bringing with it the competition not only of men but also of machines. Since the worker has sunk to the level of a machine, he can be confronted by the machine as a competitor. Finally, as the amassing of capital increases the amount of industry and therefore the number of workers, it causes the same amount of industry to manufacture a larger amount of products, which leads to over-production and thus either ends by throwing a large section of workers out of work or by reducing their wages to the most miserable minimum.

Such are the consequences of a state of society most favourable to the worker – namely, of a state of growing, advancing wealth.

Eventually, however, this state of growth must sooner or later reach its peak. What is the worker’s position now?

(3) “In a country which had acquired that full complement of riches both the wages of labour and the profits of stock would probably be very low [...] the competition for employment would necessarily be so great as to reduce the wages of labour to what was barely sufficient to keep up the number of labourers, and, the country being already fully peopled, that number could never be augmented.” [Adam Smith, Wealth of Nations, Vol. I, p. 84.]

The surplus would have to die.

Thus in a declining state of society – increasing misery of the worker; in an advancing state – misery with complications; and in a fully developed state of society – static misery.

Since, however, according to Smith, a society is not happy, of which the greater part suffers – yet even the wealthiest state of society leads to this suffering of the majority – and since the economic system[7] (and in general a society based on private interest) leads to this wealthiest condition, it follows that the goal of the economic system is the unhappiness of society.

Concerning the relationship between worker and capitalist we should add that the capitalist is more than compensated for rising wages by the reduction in the amount of labour time, and that rising wages and rising interest on capital operate on the price of commodities like simple and compound interest respectively.

Let us put ourselves now wholly at the standpoint of the political economist, and follow him in comparing the theoretical and practical claims of the workers.

He tells us that originally and in theory the whole product of labour belongs to the worker. But at the same time he tells us that in actual fact what the worker gets is the smallest and utterly indispensable part of the product – as much, only, as is necessary for his existence, not as a human being, but as a worker, and for the propagation, not of humanity, but of the slave class of workers.

The political economist tells us that everything is bought with labour and that capital is nothing but accumulated labour; but at the same time he tells us that the worker, far from being able to buy everything, must sell himself and his humanity.

Whilst the rent of the idle landowner usually amounts to a third of the product of the soil, and the profit of the busy capitalist to as much as twice the interest on money, the “something more” which the worker himself earns at the best of times amounts to so little that of four children of his, two must starve and die.

Whilst according to the political economists it is solely through labour that man enhances the value of the products of nature, whilst labour is man’s active possession, according to this same political economy the landowner and the capitalist, who qua landowner and capitalist are merely privileged and idle gods, are everywhere superior to the worker and lay down the law to him.

Whilst according to the political economists labour is the sole unchanging price of things, there is nothing more fortuitous than the price of labour, nothing exposed to greater fluctuations.

Whilst the division of labour raises the productive power of labour and increases the wealth and refinement of society, it impoverishes the worker and reduces him to a machine. Whilst labour brings about the accumulation of capital and with this the increasing prosperity of society, it renders the worker ever more dependent on the capitalist, leads him into competition of a new intensity, and drives him into the headlong rush of overproduction, with its subsequent corresponding slump.

Whilst the interest of the worker, according to the political economists, never stands opposed to the interest of society, society always and necessarily stands opposed to the interest of the worker.

According to the political economists, the interest of the worker is never opposed to that of society: (1) because the rising wages are more than compensated by the reduction in the amount of labour time, together with the other consequences set forth above; and (2) because in relation to society the whole gross product is the net product, and only in relation to the private individual has the net product any significance.

But that labour itself, not merely in present conditions but insofar as its purpose in general is the mere increase of wealth – that labour itself, I say, is harmful and pernicious – follows from the political economist’s line of argument, without his being aware of it.

In theory, rent of land and profit on capital are deductions suffered by wages. In actual fact, however, wages are a deduction which land and capital allow to go to the worker, a concession from the product of labour to the workers, to labour.

When society is in a state of decline, the worker suffers most severely. The specific severity of his burden he owes to his position as a worker, but the burden as such to the position of society.

But when society is in a state of progress, the ruin and impoverishment of the worker is the product of his labour and of the wealth produced by him. The misery results, therefore, from the essence of present-day labour itself.

Society in a state of maximum wealth – an ideal, but one which is approximately attained, and which at least is the aim of political economy as of civil society – means for the workers static misery.

It goes without saying that the proletarian, i.e., the man who, being without capital and rent, lives purely by labour, and by a one-sided, abstract labour, is considered by political economy only as a worker. Political economy can therefore advance the proposition that the proletarian, the same as any horse, must get as much as will enable him to work. It does not consider him when he is not working, as a human being; but leaves such consideration to criminal law, to doctors, to religion, to the statistical tables, to politics and to the poor-house overseer.

Let us now rise above the level of political economy and try to answer two questions on the basis of the above exposition, which has been presented almost in the words of the political economists:

(1) What in the evolution of mankind is the meaning of this reduction of the greater part of mankind to abstract labour?

(2) What are the mistakes committed by the piecemeal reformers, who either want to raise wages and in this way to improve the situation of the working class, or regard equality of wages (as Proudhon does) as the goal of social revolution?

In political economy labour occurs only in the form of activity as a source of livelihood.

||VIII, 1|“It can be asserted that those occupations which presuppose specific talents or longer training have become on the whole more lucrative; whilst the proportionate reward for mechanically monotonous activity in which one person can be trained as easily and quickly as another has fallen with growing competition, and was inevitably bound to fall. And it is just this sort of work which in the present state of the organization of labour is still by far the commonest. If therefore a worker in the first category now earns seven times as much as he did, say, fifty years ago, whilst the earnings of another in the second category have remained unchanged, then of course both are earning on the average four times as much. But if the first category comprises only a thousand workers in a particular country, and the second a million, then 999,000 are no better off than fifty years ago – and they are worse off if at the same time the prices of the necessaries of life have risen. With such superficial calculation of averages people try to deceive themselves about the most numerous class of the population. Moreover, the size of the wage is only one factor in the estimation of the worker’s income, because it is essential for the measurement of the latter to take into account the certainty of its duration – which is obviously out of the question in the anarchy of so-called free competition, with its ever-recurring fluctuations and periods of stagnation. Finally, the hours of work customary formerly and now have to be considered. And for the English cotton-workers these have been increased, as a result of the entrepreneurs’ mania for profit. ||IX, 1| to between twelve and sixteen hours a day during the past twenty-five years or so – that is to say, precisely during the period of the introduction of labour-saving machines; and this increase in one country and in one branch of industry inevitably asserted itself elsewhere to a greater or lesser degree, for the right of the unlimited exploitation of the poor by the rich is still universally recognized.” (Wilhelm Schulz, Die Bewegung der Production.)

“But even if it were as true as it is false that the average income of every class of society has increased, the income-differences and relative income-distances may nevertheless have become greater and the contrasts between wealth and poverty accordingly stand out more sharply. For just because total production rises – and in the same measure as it rises – needs, desires and claims also multiply and thus relative poverty can increase whilst absolute poverty diminishes. The Samoyed living on fish oil and rancid fish is not poor because in his secluded society all have the same needs. But in a state that is forging ahead, which in the course of a decade, say, increased by a third its total production in proportion to the population, the worker who is getting as much at the end of ten years as at the beginning has not remained as well off, but has become poorer by a third.” (op. cit., pp. 65-66)

But political economy knows the worker only as a working animal – as a beast reduced to the strictest bodily needs.

“To develop in greater spiritual freedom, a people must break their bondage to their bodily needs – they must cease to be the slaves of the body. They must, above all, have time at their disposal for spiritual creative activity and spiritual enjoyment. The developments in the labour organism gain this time. Indeed, with new motive forces and improved machinery, a single worker in the cotton mills now often performs the work formerly requiring a hundred, or even 250 to 350 workers. Similar results can be observed in all branches of production, because external natural forces are being compelled to participate to an ever-greater degree in human labour. If the satisfaction of a given amount of material needs formerly required a certain expenditure of time and human effort which has later been reduced by half, then without any loss of material comfort the scope for spiritual activity and enjoyment has been simultaneously extended by as much.... But again the way in which the booty, that we win from old Cronus [Greek God associated with time.] himself in his most private domain, is shared out is still decided by the dice-throw of blind, unjust Chance. In France it has been calculated that at the present stage in the development of production an average working period of five hours a day by every person capable of work could suffice for the satisfaction of all the material interests of society.... Notwithstanding the time saved by the perfecting of machinery. the duration of the slave-labour performed by a large population in the factories has only increased.” (Schulz, op. cit., pp. 67, 68.)

“The transition from compound manual labour rests on a break-down of the latter into its simple operations. At first, however, only some of the uniformly-recurring operations will devolve on machines, while some will devolve on men. From the nature of things, and from confirmatory experience, it is clear that unendingly monotonous activity of this kind is as harmful to the mind as to the body; thus this combination of machinery with mere division of labour among a greater number of hands must inevitably show all the disadvantages of the latter. These disadvantages appear, among other things, in the greater mortality of factory workers.... Consideration has not been given ... to this big distinction as to how far men work through machines or how far as machines.” (op. cit., p. 69.)

“In the future life of the peoples, however, the inanimate forces of nature working in machines will be our slaves and serfs.” (op. cit., p. 74.)

“The English spinning mills employ 196,818 women and only 158,818 men. For every 100 male workers in the cotton mills of Lancashire there are 103 female workers, and in Scotland as many as 209. In the English flax mills of Leeds, for every 100 male workers there were found to be 147 female workers. In Dundee and on the east coast of Scotland as many as 280. In the English silk mills ... many female workers; male workers predominate in the woollen mills where the work requires greater physical strength. In 1833, no fewer than 38,927 women were employed alongside 18,593 men in the North American cotton mills. As a result of the changes in the labour organism, a wider sphere of gainful employment has thus fallen to the share of the female sex.... Women now occupying an economically more independent position ... the two sexes are drawn closer together in their social conditions.” (op. cit., pp. 71-72.)

“Working in the English steam- and water-driven spinning mills in 1835 were: 20,558 children between the ages of eight and twelve; 35,867 between the ages of twelve and thirteen; and, lastly, 108,208 children between the ages of thirteen and eighteen.... Admittedly, further advances in mechanisation, by more and more removing all monotonous work from human hands, are operating in the direction of a gradual ||XII, 1| elimination of this evil. But standing in the way of these more rapid advances is the very circumstance that the capitalists can, in the easiest and cheapest fashion, appropriate the energies of the lower classes down to the children, to be used instead of mechanical devices.” (op. cit., pp. 70-71.)

“Lord Brougham’s call to the workers – ‘Become capitalists’. ... This is the evil that millions are able to earn a bare subsistence for themselves only by strenuous labour which shatters the body and cripples them morally and intellectually; that they are even obliged to consider the misfortune of finding such work a piece of good fortune.” (op. cit., p. 60.)

“In order to live, then, the non-owners are obliged to place themselves, directly or indirectly, at the service of the owners – to put themselves, that is to say, into a position of dependence upon them.” (Pecqueur, Théorie nouvelle d’économie soc., etc..)

“To hire out the materials of labour”, “to lend the materials of labour at interest”, “to make others work in one’s place”. (op. cit., p. 411.)

“Such an economic order condemns men to occupations so mean, to a degradation so devastating and bitter, that by comparison savagery seems like a kingly condition.... (op. cit., pp. 417, 418.) “Prostitution of the non-owning class in all its forms.” (op. cit., p. 421 f.) “Ragmen.”

Charles Loudon in the book Solution du probleme de la population, etc., Paris, 1842[8], declares the number of prostitutes in England to be between sixty and seventy thousand. The number of women of doubtful virtue is said to be equally large (p. 228).

“The average life of these unfortunate creatures on the streets, after they have embarked on their career of vice, is about six or seven years. To maintain the number of sixty to seventy thousand prostitutes, there must be in the three kingdoms at least eight to nine thousand women who commit themselves to this abject profession each year, or about twenty-four new victims each day – an average of one per hour; and it follows that if the same proportion holds good over the whole surface of the globe, there must constantly be in existence one and a half million unfortunate women of this kind.” (op. cit., p. 229.)

“The numbers of the poverty-stricken grow with their poverty, and at the extreme limit of destitution human beings are crowded together in the greatest numbers contending with each other for the right to suffer.... In 1821 the population of Ireland was 6,801,827. In 1831 it had risen to 7,764,010 – an increase of 14 per cent in ten years. In Leinster, the wealthiest province, the population increased by only 8 per cent; whilst in Connaught, the most poverty-stricken province, the increase reached 21 per cent. (Extract from the Enquiries Published in England on Ireland, Vienna, 1840.)” (Buret, De la misère, etc., t. 1, pp. 36, 37.)

Political economy considers labour in the abstract as a thing; labour is a commodity. If the price is high, then the commodity is in great demand; if the price is low, then the commodity is in great supply: the price of labour as a commodity must fall lower and lower. (Buret, op. cit.) This is made inevitable partly by the competition between capitalist and worker, partly by the competition amongst the workers.

“The working population, the seller of labour, is necessarily reduced to accepting the most meagre part of the product.... Is the theory of labour as a commodity anything other than a theory of disguised bondage?” (op. cit, p. 43.) “Why then has nothing but an exchange-value been seen in labour?” (op. cit., p. 44.)

The large workshops prefer to buy the labour of women and children, because this costs less than that of men. (op. cit.)

“The worker is not at all in the position of a free seller vis-à-vis the one who employs him.... The capitalist is always free to employ labour, and the worker is always forced to sell it. The value of labour is completely destroyed if it is not sold every instant. Labour can neither be accumulated nor even be saved, unlike true [commodities].

“Labour is life, and if life is not each day exchanged for food, it suffers and soon perishes. To claim that human life is a commodity, one must, therefore, admit slavery.” (op. cit., p. 49, 50.)

If then labour is a commodity it is a commodity with the most unfortunate attributes. But even by the principles of political economy it is no commodity, for it is not the “free result of a free transaction.” [op. cit.] The present economic regime

“simultaneously lowers the price and the remuneration of labour; it perfects the worker and degrades the man.” (op. cit., pp. 52-53.) “Industry has become a war, and commerce a gamble.” (op. cit., p. 62.)

Up to the present, industry has been in a state of war, a war of conquest:

“It has squandered the lives of the men who made up its army with the same indifference as the great conquerors. Its aim was the possession of wealth, not the happiness of men.” (Buret, op. cit.) “These interests” (that is, economic interests), “freely left to themselves ... must necessarily come into conflict; they have no other arbiter but war, and the decisions of war assign defeat and death to some, in order to give victory to the others.... It is in the conflict of opposed forces that science seeks order and equilibrium: perpetual war, according to it, is the sole means of obtaining peace; that war is called competition.” (op. cit., p. 23.)

“The industrial war, to be conducted with success, demands large armies which it can amass on one spot and profusely decimate. And it is neither from devotion nor from duty that the soldiers of this army bear the exertions imposed on them, but only to escape the hard necessity of hunger. They feel neither attachment nor gratitude towards their bosses, nor are these bound to their subordinates by any feeling of benevolence. They do not know them as men, but only as instruments of production which have to yield as much as possible with as little cost as possible. These populations of workers, ever more crowded together, have not even the assurance of always being employed. Industry, which has called them together, only lets them live while it needs them, and as soon as it can get rid of them it abandons them without the slightest scruple; and the workers are compelled to offer their persons and their powers for whatever price they can get. The longer, more painful and more disgusting the work they are given, the less they are paid. There are those who, with sixteen hours’ work a day and unremitting exertion, scarcely buy the right not to die.” (op. cit., pp. 68-69.)

“We are convinced ... as are the commissioners charged with the inquiry into the condition of the hand-loom weavers, that the large industrial towns would in a short time lose their population of workers if they were not all the time receiving from the neighbouring rural areas constant recruitments of healthy men, a constant flow of fresh blood.” (op. cit., p. 362.)